One-way and Two-way Positions

One-Way Position Mode

In one-way mode, a contract supports only one active position direction at a time — either long or short.

• If you place an order in the opposite direction, it will first close your existing position (partially or fully), then open a new position if the volume exceeds the previous one.

Example:

You're trading the BTCUSDT contract:

• You hold 1 BTC long.

• You open a 2 BTC short order.

Result:

• Your 1 BTC long is closed.

• A 1 BTC short position is established.

Two-Way Position Mode

In two-way mode, a contract supports simultaneous long and short positions. Orders in the opposite direction do not close existing positions — instead, they create independent positions.

⚠️ Positions in opposite directions do not hedge each other. Each is exposed to market movements individually.

Example:

You're trading the BTCUSDT contract:

• You hold 1 BTC long.

• You open a 2 BTC short order.

Result:

• You now hold 1 BTC long and 2 BTC short at the same time.

---

Key Differences

Feature	One-Way Mode	Two-Way Mode
Active Position Direction	One (long or short)	Both (long and short simultaneously)
Opposite Orders	Close existing, then open new	Open new without closing
Hedging Capability	No	No (positions are independent)
Use Case	Simple directional trades	Advanced strategies (e.g., grid, hedging-style)